{"id":4409,"date":"2009-10-23T11:49:23","date_gmt":"2009-10-23T16:49:23","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4409"},"modified":"2009-10-23T11:49:23","modified_gmt":"2009-10-23T16:49:23","slug":"gold-bounces-after-touching-1050oz","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/23\/gold-bounces-after-touching-1050oz\/","title":{"rendered":"Gold Bounces after Touching $1050\/oz"},"content":{"rendered":"

By Fast Brokers<\/strong> – Gold is recovering from earlier losses after edging beneath our 2nd tier uptrend line and tapping its psychological $1050\/oz level.\u00a0 Gold was initially hit by the massive selloff in the Cable in reaction to a shockingly negative Prelim GDP release.\u00a0 However, EU PMI data printed positively mixed and gold continues to take its cue from the Euro and Aussie.\u00a0 As a result, gold is holding strong above $1050\/oz while continuing its consolidative pattern.\u00a0 We still believe the wedge applies, and we may witness an inflection point once our downtrend line collides with our 2nd tier uptrend line.\u00a0 That being said, gold\u2019s uptrend is alive and well despite uncertainty regarding Britan\u2019s economic fundamentals.\u00a0 U.S. Q3 earnings and Existing Home Sales also came in better than expected today, and increased optimism surrounding the health of America\u2019s economy bodes well for gold\u2019s medium-term outlook due to its negative correlation with the Dollar.\u00a0 Although the Dollar is strengthening today, it\u2019s reasonable to believe that the Euro and Aussie can head higher while the Pound slides.\u00a0 After all, we\u2019ve seen this negative correlation occur only recently.<\/p>\n

Meanwhile, attention will remain focused on the U.S. and Britain since we will receive more important econ data early next week in conjunction with the Q3 earnings flow.\u00a0 A recovery in British econ data coupled with more optimistic U.S. numbers would likely accelerate the broad-based devaluation of the Dollar and send gold higher.\u00a0 However, uncertainty has re-entered the marketplace, so investors should be wary of upcoming releases.<\/p>\n

Technically speaking, gold\u2019s consolidation is building a solid base should the precious metal decide to head towards $1100\/oz.\u00a0 Furthermore, gold continues to set higher lows and has avoided the idea of heading beneath $1050\/oz and 10\/16 lows.\u00a0 However, it seems gold will reach a breaking point in the near-future, and we will have to wait and see whether the Dollar works in favor of the precious metal.\u00a0 Previous October highs continue to serve as a technical barrier along with our downtrend line.\u00a0 As for the downside, gold has a couple uptrend lines serving as technical cushions to go along with 10\/21 and 10\/16 lows as well as $1050\/oz.\u00a0 For the time being, investors should pay particularly close attention to the EUR\/USD\u2019s present interaction with its highly psychological 1.50 level.<\/p>\n

Present Price: $1057.90\/oz<\/p>\n

Resistances: $1058.75\/oz, $1061.40\/oz, $1065.15\/oz, $1068.06\/oz, $1070.66\/oz<\/p>\n

Supports: $1055.46\/oz, $1051.91\/oz, $1048.62\/oz, $1045.32\/oz, $1042.96\/oz<\/p>\n

Psychological: $1050\/oz, $1075\/oz, $1100\/oz<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong><\/span><\/span>.<\/a><\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – Gold is recovering from earlier losses after edging beneath our 2nd tier uptrend line and tapping its psychological $1050\/oz level.\u00a0 Gold was initially hit by the massive selloff in the Cable in reaction to a shockingly negative Prelim GDP release.\u00a0 However, EU PMI data printed positively mixed and gold continues to … <\/p>\n

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